INSURANCE COMMISSIONER POIZNER HIGHLIGHTS STRENGTH OF STATE-BASED
INSURANCE OVERSIGHT, OPPOSITION TO OPTIONAL FEDERAL CHARTER
Insurance Commissioner Steve Poizner today warned state insurance regulators to be engaged in opposing
national attempts to weaken the current state-by-state insurance oversight at the National Association of
Insurance Commissioners (NAIC) Spring 2009 National Meeting in San Diego
.
“We must emphasize that, in one sense, the current economic problems underscore the success of state
regulation – insurers are generally strong and able to meet their obligations,” said Commissioner Poizner.
“There is, however, a serious risk that some will use the country’s turmoil as leverage to impose federal
regulation on the insurance industry.
“I remain a strong supporter of state-based regulation, but we simply cannot hope to stave off increased
federal involvement with a ‘just-say-no approach.’ It is imperative that we remain aggressively engaged
in this debate because, in my view, it is the most important issue we now face.
“As you conduct your work here over the next few days, I encourage you to keep this in mind. We are
in a time when external conditions create great pressure for change. The current financial meltdown will
be used by the advocates of Optional Federal Charter and other forms of increased federal regulation to
claim that taking power from state regulators will somehow make the insurance industry stronger. In
fact, the day after tomorrow the Senate Banking Committee will hold a hearing on ‘Perspectives on
Modernizing Insurance Regulation.’ Call it a hunch, but I don’t expect them to come out with a strong
endorsement for existing state regulation. Determining how we respond to these pressures must be our
top priority.”
The NAIC hosts quarterly meetings to facilitate coordination between the individual states regulatory
efforts. The last meeting held in California was June 2008.
Founded in 1871, the NAIC assists state insurance regulators, individually and collectively, in serving the
public interest and achieving fundamental insurance regulatory goals in a responsive, efficient and cost
effective manner.
# # #
INSURANCE OVERSIGHT, OPPOSITION TO OPTIONAL FEDERAL CHARTER
Insurance Commissioner Steve Poizner today warned state insurance regulators to be engaged in opposing
national attempts to weaken the current state-by-state insurance oversight at the National Association of
Insurance Commissioners (NAIC) Spring 2009 National Meeting in San Diego
.
“We must emphasize that, in one sense, the current economic problems underscore the success of state
regulation – insurers are generally strong and able to meet their obligations,” said Commissioner Poizner.
“There is, however, a serious risk that some will use the country’s turmoil as leverage to impose federal
regulation on the insurance industry.
“I remain a strong supporter of state-based regulation, but we simply cannot hope to stave off increased
federal involvement with a ‘just-say-no approach.’ It is imperative that we remain aggressively engaged
in this debate because, in my view, it is the most important issue we now face.
“As you conduct your work here over the next few days, I encourage you to keep this in mind. We are
in a time when external conditions create great pressure for change. The current financial meltdown will
be used by the advocates of Optional Federal Charter and other forms of increased federal regulation to
claim that taking power from state regulators will somehow make the insurance industry stronger. In
fact, the day after tomorrow the Senate Banking Committee will hold a hearing on ‘Perspectives on
Modernizing Insurance Regulation.’ Call it a hunch, but I don’t expect them to come out with a strong
endorsement for existing state regulation. Determining how we respond to these pressures must be our
top priority.”
The NAIC hosts quarterly meetings to facilitate coordination between the individual states regulatory
efforts. The last meeting held in California was June 2008.
Founded in 1871, the NAIC assists state insurance regulators, individually and collectively, in serving the
public interest and achieving fundamental insurance regulatory goals in a responsive, efficient and cost
effective manner.
# # #
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